Please see below Company U's financial statements in 2020: $870 Income Statement Balance Sheet Current...
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Please see below Company U's financial statements in 2020: $870 Income Statement Balance Sheet Current Sales $3.500 Current assets $3,400 liabilities Long-term Costs 2,200 Fixed assets 4,800 debt Taxable income $1,300 Equity Taxes (21%) 273 Total $8,200 Total Net income $1,027 3,670 3,660 $8,200 We know that Company U's Assets, costs, and current liabilities are proportional to sales while long-term debt and equity are not. Analysts predict a 25 percent growth in Company U's sales in 2021. The management wants to maintain a constant 70 percent dividend payout ratio. Calculate the EFN (external financing needed) Multiple Choice
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